MANAMA: Ithmaar Bank B.S.C. (Closed), a Bahrain-based Islamic retail bank, reported profits for the first quarter of the year as it announced its financial results for the three-month period ended 31 March 2022. The announcement, by Ithmaar Bank Chairman His Royal Highness Prince Amr Al Faisal, follows the review and approval of the Board of Directors of the Bank’s consolidated financial results.
Ithmaar Bank’s financial results show a net profit attributable to equity holders for the three-month period ended 31 March 2022 of BD0.196 million compared to the net profit of BD0.153 million reported for the same period in 2021. Total net profit for the three-month period ended 31 March 2022 was BD1.502 million compared to the BD1.547 million net profit reported for the same period in 2021.
“On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that Ithmaar Bank’s financial results show that the Bank is poised to start its next phase of evolution on strong, solid footing,” said HRH Prince Amr. “This marks an important milestone in the Group’s transformation, in line with the strategic decisions taken by shareholders, as we add to our decades-long history as key pioneers of the region’s Islamic banking and finance industry,” he said.
The next phase, which will see the Bank focus exclusively on serving corporate customers, particularly the fast-growing SME sector, follows an announcement in January 2022 that Ithmaar Bank’s parent company, Ithmaar Holding, and Al Salam Bank agreed in principle on the acquisition by Al Salam Bank of the consumer banking business of Ithmaar Bank in Bahrain, as well as Ithmaar Holdings’ ownership stake in both BBK and Solidarity Group Holding. Following the acquisition, which was approved by Ithmaar Holding shareholders at an Extra Ordinary General Meeting on 17 March 2022, Ithmaar Bank will continue as a bank wholly-owned by Ithmaar Holding, licensed by the Central Bank of Bahrain and specialised in Corporate Banking and related services, after obtaining the final approvals from the regulatory authorities. The assets and liabilities subject to the above transaction have been presented separately as ‘held-for-sale’ in the consolidated financial information in accordance with the relevant accounting standards.
Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim said the Bank’s financial results show that efforts to transform the Group have paid off, with the Bank perfectly positioned to best capitalise on the exciting challenges and growth opportunities that lie ahead in the corporate banking space.
“The Bank’s financial results for the period ended 31 March 2022 show operating income increasing to BD20.193 million, a 16 percent increase compared to BD17.350 million for in the same period last year,” said Abdul Rahim. “The results also show that the Bank’s total liabilities, including unrestricted investment accounts, increased to BD3.306 billion as at 31 March 2022, a 2.4 percent increase compared to BD3.231 billion as at 31 December 2021,” he said.
